In order for an economy to increase its production possibilities, the economy must
A) be very efficient.
B) increase inputs.
C) increase its wants.
D) reduce output.
Answer: B
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On the foreign exchange market, an increase in a country's exchange rate
A) decreases the demand for its currency and shifts the demand curve rightward. B) increases the quantity demanded of its currency and leads to a movement up along the demand curve. C) decreases the quantity demanded of its currency and leads to a movement up along the demand curve. D) decreases the demand for its currency and shifts the demand curve leftward. E) increases the quantity demanded of its currency and leads to a movement down along the demand curve.
The work of Robert Lucas and Thomas Sargent ________ the existence of a downward-sloping Phillips Curve in the ________
A) first proposed, short run B) first proposed, short and long runs C) cast further doubt on, long but not short run D) cast further doubt on, short and long runs
Regarding demand and supply, which of the following statements is NOT correct?
a. Demand and supply simultaneously determine equilibrium market price b. Demand expresses intentions, but supply does not c. Demand is a potential concept distinguished from the transactional even of "units sold" d. Supply is more like scenario planning for operations than for actual production e. all of the above statements are correct
Adam Smith wrote two very important books. The Wealth of Nations describes how markets work when people exercise self-interest. The other claims that humans
A. have a moral sense which gives them an interest in the wellbeing of others. B. who reject religion will be unsuccessful in markets. C. have not relied enough on the visible hand of government to control markets. D. constantly miscalculate and make bad decisions.